Immigration New Zealand has announced changes to its popular Golden Visa programme, which will see a relaxation of rules, making it easier for people to invest and move to the country.
New Zealand has emerged as one of the most desirable destinations for expats due to its high standards of living, social cohesion, and stable government. Other benefits include a mild climate and good quality of life. Data from the latest census shows that approximately 210,915 British expats live in New Zealand, representing around 4.49% of the total population.
There are various pathways to residency in New Zealand, including via its residency by investment programme. For many years, this was very successful in attracting highly impactful talent and capital. In return, New Zealand received new skills and networks and an impactful financial investment in its fragile domestic economy. However, under the previous Labour government, changes were made to visa criteria which effectively killed interest in the programme, says legal firm Dentons.
By launching the revamped AIP visa, the current coalition government has recognised these failings and the important role of foreign talent and capital in the business and innovation ecosystem, the firm said.
New rules
Under the revised rules published by Immigration New Zealand, applicants can choose to apply for a New Zealand resident visa under one of the two AIP visa categories:
- Growth category: Applicants must invest NZD 5 million (~£2.23 million) in approved managed funds and/or direct investments and must spend at least 21 days in New Zealand over a three-year period.
- Balanced category: Applicants must invest NZD 10 million (~£4.46 million) in acceptable investments and spend at least 105 days in New Zealand over five years.
Applicants under the Balanced Category are eligible for a reduction in the number of days they must spend in New Zealand during the five-year investment period if they invest additional funds into acceptable direct investments and/or managed funds. In addition, the government has also removed the English language requirement for applicants.
These changes are likely to be incredibly popular and represent a return to form compared to New Zealand’s historic investment visa offerings, Dentons said.
“In the late 2010s and early 2020s, New Zealand Government policy was very insular and discouraging of foreign investment. This, among other things, contributed to a sharp decline in the country’s economic prospects.”
An unintended consequence of this is that, under current foreign exchange rates against most major currencies, the New Zealand Dollar looks undervalued, the group said.
“In the meantime, New Zealand has maintained its reputation as a safe haven for human capital and a bastion of democracy in a world where such things can no longer be taken for granted. Further, popular residency and citizenship by investment programmes in some other countries have been restricted or are under scrutiny, which is limiting the options for globally mobile talent,” Dentons said.
“The kicker is that New Zealand once again has a sensible and attractive residency by investment programme. Early signals are that the programme will be heavily subscribed, and applications surged in the first couple of months.”
Leave a Reply